Wey Education Share Discussion Threads

[mcfly79] 28/8/2018 13:18

I attended the investor evening.

What was emphasised a number of times is that the year about to end was about putting in place foundations for future growth. This coming year is about concentrating on those opportunities where they now have the foundations (China, Nigeria and of course the core UK business).

I'm here for the longer term growth. That growth is forecast to be fairly spectacular over the coming few years (WHIreland are forecasting turnover growth of over 100% this coming year and 70% the following year with profit growth even higher due to the inherent operational gearing in the business).

With such a small company the timing of the growth can be difficult to predict and the forecast may prove to be wrong but the company's direction of travel looks good and I'm happy to ride out volatility for the potential of the long term gain.

David pointed out at the Investor Evening that the company is now getting the processes and governance in place of a much larger company. In the Director's talk interview David speaks of building a company perhaps 50 times the current size. This is ambitious talk and I'll judge him by how he can grow the business over the next 2 years.

In the near term we should get an announcement in the next month or two about the Chinese and Nigerian paperwork having been signed (and the Chinese classes with commence next month regardless).

[rampmeister] 28/8/2018 13:12

Nice ascending staircase chart today.

RM

[seanworld] 28/8/2018 12:56

666james --> netcurtains provided an update with regards to the investor evening.

Bought 10k for the wife this a.m. 16.5p. Her timing as usual always betters mine.
Nice rise today in anticipation of an update on either China/Nigeria.

[666james] 28/8/2018 09:36

Has anyone reported back re the "investor evening" ? Wey is looking a bit stronger..not sure if/when we will hit 20p though. At least it is heading north.

[its the oxman] 28/8/2018 08:54

20p could be possible here. Results need to inspire though.

[netcurtains] 25/8/2018 10:43

Listening to Seanworld's link its basically saying two RNS in SEPT (just 4 trading days away) and results on OCT....

So quite realistic to expect a gentle rise from about now to the end of OCT....
Lets see how it goes.

[seanworld] 24/8/2018 20:56

Interview with D.Massie. Directors Talk

[netcurtains] 24/8/2018 10:01

todays trades, (big green looks like a buy in that price moved up as a result)

[abergele] 24/8/2018 09:41

Happy to be here, even though I bought in months ago,,
fruition now taking place I believe..buy and hold I say..gl

[netcurtains] 24/8/2018 06:35

I think short term traders can take away from the Investor Evening that management are expecting to make two further positive RNS annoucements (very shortly) concerning the international deals.

The numbers of students WEY will be teaching in the Chinese trial is actually larger than the figures I previously suggested ...

The management did point out that WEY's growth is accelerating and iit will be making about £2M annual profit next year and £500K tihis year (bit of a hang over so might have read that wrong). Profit per teacher might be increasing because class sizes are not increasing but teachers are teaching more classes....

Management pointed out that the boutique school (Infinity Education) could make serious money from rich SE Asia kids wanting to get into MIT, Oxford, Cambridge. This is an interesting redirection of the school and I think it is quite an exciting concept. For example they recruited a Cambridge IT guru to give some lessons in IT to a posh SE Asia school for good money income. (bit hung over so not sure of all the details someone else might put more padding on this). A investor suggested they do up the Infinity web pages a bit to highlight this redirection , but I guess that is not the point, its not meant to be too flash , its meant to be serious and a bit dull looking if you see what I mean.

[seanworld] 23/8/2018 17:18

Post from G.Neary from Stockopedia. He's not buying as yet but now watching.
Must be a good sign! With some good wishes for the company thrown in!



Share price: 15.75p (+12%)
No. of shares: 130 million
Market cap: £20.5 million
Trading Update

Wey Education plc (AIM: WEY), the educational services group provides this trading update for its year ending 31 August 2018 and announces certain other matters.
I looked at this company when it released interim results in May, on a day when the share price crashed by over 30%.

The shares have continued to drift lower since then.

Thankfully, today's update is a lot more positive. Sales will exceed expectations, while underlying P&L will be in line with expectations.

Sales in its online high school business, Interhigh, improved by 20%.

Its Chinese JV is about to start making sales, and the Nigerian subsidiary should begin operating some time in the Autumn.

Adjusted PBT is set to come in at £400k - £500k, but that's only after very heavily adjusting it. It's still at a very early stage in its plans, so it's not making any real profits.

There are no "current intentions" to issue shares, but the Board is seeking the authority to issue up to 40 million new shares, so we can't rule out the possibility that they will. Paul was caught out when the company did a placing at a 33% discount to the prevailing share price last November.

My view

Online education is a growing sector all around the world, and I wish the company well in its new activities in China and Nigeria.

For the same reasons as I mentioned last time, it's not something I would personally invest in yet. But I will keep an eye on it for signs that it is succeeding

[netcurtains] 23/8/2018 15:50

see you all tonight - hopefully they will have some extra items of note!.
Micro: I dont think Nigeria is any worse than the Middle East thing that was raised in the last meeting. Its all the same. And its good that they have a strategy to avoid it.

[microscope] 23/8/2018 15:32

Cheers kcr and seanworld. Nigeria does create a vague sense of unease, but I don't profess to know more than anyone else other than the 'public perception' of the country, so wouldn't have a strong opinion.

China though is beginning to take shape very nicely, as McFly suggested it would. The comments are quite revealing too: 'With first sales expected in September 2018, it anticipated that China should make a meaningful contribution to revenues next year but the extent of this contribution will be dependent on timing of new contracts. In this initial year we have priced the business to grow market share. We remain excited about the opportunities for the Group from China which are considerable in the medium term.'

It's clear at least for some months any profits (as opposed to revenues) and likely for the next 12 months will be small if atall from those comments ('We have priced the business to grow market share'). I wouldn't say that translates as loss-leader, but probably this year margins will be wafer thin.

I don't have any issue with that atall. Seems a good business approach and they have shown domestically they can improve margins, so hopefully that will be repeated in China.

PS: Thanks for the next 12 months projections McFly.

[netcurtains] 23/8/2018 14:59

wey on directors talk


ddddd . directorstalk.net/wey-education-plc-to-exceed-market-expectations/

[netcurtains] 23/8/2018 14:45

kaka47: you needed to be at the meeting. Sorry. But its all OK. stay cool, you could do all right here.

[kaka47] 23/8/2018 14:32

We are not talking about Millions here just few thousands in fees Which can be transferred by a debit card or credit card online in to wey Nigeria account Just doesn't make sense potential bad debt

[kaka47] 23/8/2018 14:25

How is it money laundering when you are only paying just fees

[netcurtains] 23/8/2018 14:12

kaka47: some good points made by you. However on the flip side if you let people pay you direct in places like Nigeria it only takes one dodgy person (money laundering etc) to have your account closed down. Its potentially better to let third party deal with the banking. This was talked about in the last investor evening.

[kaka47] 23/8/2018 14:07

Separately WNL is negotiating an operation and services agreement with a local Nigerian company who will be sub-contracted by WNL to provide a range of operations and marketing services to WNL in Nigeria including collection of tuition fees.Kiss good bye to fees Stinks

[netcurtains] 23/8/2018 13:17

todays trades, as you can see the fun has hardly started.
Still miles under 23p, the price the big boys bought in at and miles behind previous highs of 40 something.

[ny boy] 23/8/2018 11:36

Investors buying any shares being sold, looking forward to some positive press

[mcfly79] 23/8/2018 11:19

Yes - good comments.WHIreland new figures out. Current year unchanged (other than cash balance now £4m). For next year turnover forecast to be £8.4m, adjusted profit before tax of £1.95m and closing cash of £5.7m.

[seanworld] 23/8/2018 10:33

kcr69


Good comment. I totally concur.